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AUSTRALIAN INTEREST RATES SEEN TO REMAIN STEADY IN SEPT: SURVEY.

AsiaPulse News

| September 01, 2006 | COPYRIGHT 2006 Asia Pulse Pty Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

SYDNEY, Sept 1 Asia Pulse - The Reserve Bank of Australia (RBA) is expected to keep interest rates on hold next week, although opinions are mixed as to whether inflationary pressures will prompt another hike in the coming months.

Of the 15 economists surveyed by AAP, 14 expected the central bank to hold official interest rates at six per cent at its September board meeting on Tuesday.

However, five expect another rate hike in the December quarter.

The RBA lifted interest rates by a quarter of a percentage point in August, to six per cent, following a rise of the same amount in May.

But despite some uncertainty about whether the RBA would hike again this year, the majority or nine economists believe interest rates would remain at six per cent until March 2007.

UBS senior economist Adam Carr said he expected interest rates to remain unchanged as the domestic and global economies slow, easing inflationary pressures.

"We've got the RBA on hold basically, not only till March, but also throughout next year as well," he said.

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Source: HighBeam Research, AUSTRALIAN INTEREST RATES SEEN TO REMAIN STEADY IN SEPT: SURVEY.

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